Tui Travel helps put parent firm on an even keel

The German firm, which holds 56 per cent of FTSE 100-listed Tui Travel, said yesterday its turnover rose 1.4 per cent on last year to €3.5bn (£3bn), or flat excluding currency changes, in the first financial quarter.

It posted an underlying loss of €141m, four per cent better than a year ago.

Tui AG, which dramatically started and then called off merger talks with Tui Travel last month, said the UK firm had delivered a “sound operating performance”.

Tui Travel reported first-quarter results last week and said more Europeans were booking all-inclusive holidays to make the best use of dwindling incomes.

Yesterday Tui AG said its cruises business was delivering “substantial growth”, with revenues up from €40m last year to €51m, though operating losses widened to €11m due to spending on expansion.